This was witnessed widely in the US debt crises where financial institutions were able to hide their exposure to low quality financial instruments through the use of complex accounting policies and practices. Someone’s understanding can come from perceived causes or non causal sources, suggesting knowledge being a pillar of where understanding comes from. We can have understanding while lacking corresponding knowledge and have knowledge while lacking the corresponding understanding.
Within systems engineering, quality attributes are realized non-functional requirements used to evaluate the performance of a system. These are sometimes named architecture characteristics, or “ilities” after the suffix many of the words share. They are usually architecturally significant requirements that require architects’ attention. From the above definitions, it becomes clear that understandability is the crux of XAI as it is included in varying degree in different terminologies. Interpretability and Transparency are very close concepts as a completely interpretable learning model will ultimately inherit the property of transparency. As a result, this user-focused notion of XAI makes it a Human-centered AI endeavour.
More from Merriam-Webster on understand
Therefore, accounting facts and accounting practices should be impartially determined and reported with no objective of purposeful bias toward any user or user group. If there is no bias in selection of accounting information reported, it cannot be said to favour one set of interests over another. It may, in fact, favour certain interests, but only because the information points that way. understandability meaning of information is governed by a combination of user characteristics, and characteristics inherent in the information. Understandability , should be determined in terms of broad classes of users (decision-makers) rather than particular user groups. There’s nothing worse than having that pesky bug at the back of your mind while you’re writing new code.
Understandability assumes that users of financial statements have reasonable background knowledge of business and economic activities. It requires the information presented in financial reports to be concise, complete and clear in presentation. However, understandability does not allow omission of information about any complex economic phenomena altogether from financial statements only due to its underlying complexity/difficulty.
Natural Language Processing
Reliable information is required to form judgements about the earning potential and financial position of a business firm. The question of relevance arises after identification and recognition of the purpose for which the information will be used. It means that information relevant for one purpose may not be necessarily relevant for other purposes.
Transparency is achieved by a learning model when it is understandable by itself i.e. no other interface or process is needed. A post hoc explanation of a learning model can be propounded, however, the interpretability of the learning model is a feature that is arrived at from the design of the learning model itself. Interpretability delineates the passive feature of a learning model referring to the extent at which a given learning model makes sense to a user. https://www.globalcloudteam.com/ also requires the notes and disclosures to be properly numbered and cross-referenced to the primary financial statements (statement of financial position, statement of profit or loss, etc.). For example, the note number of disclosure on leases should be mentioned in front of the lease liabilities line item on the statement of financial position.
Featured in AI, ML & Data Engineering
If you are rating more than one material, focus only on the material that you are reviewing and do not try to compare it to the previous material that you looked at. Do not let your rating of one item influence your rating of other items. Be careful to rate each item separately and distinctly from how you rated other items. Conservatism is a prudent reaction to uncertainty to try to ensure that uncertainties and risks inherent in business situations arc adequately considered. Thus, if two estimates of amounts to be received or paid in the future are about equally likely, conservatism dictates using the less optimistic estimates.
Practical and effective communication, or its lack thereof, can be the ultimate difference between company success and failure. Verifiability is the extent to which information is reproducible given the same data and assumptions. For example, if a company owns equipment worth $1,000 and told an accountant the purchase cost, salvage value, depreciation method, and useful life, the accountant should be able to reproduce the same result. Off balance sheet financing hides the nature and extent of credit and market risk a company is exposed to and may therefore mislead investors regarding the potential volatility of their investment.
Goals of XAI (from most to least sought after)
Even with knowledge, relevant distinctions or correct conclusion about similar cases may not be made suggesting more information about the context would be required, which eludes to different degrees of understanding depending on the context. To understand something implies abilities and dispositions with respect to an object of knowledge that are sufficient to support intelligent behavior. Understanding is a cognitive process related to an abstract or physical object, such as a person, situation, or message whereby one is able to use concepts to model that object. Understanding is a relation between the knower and an object of understanding. Understanding implies abilities and dispositions with respect to an object of knowledge that are sufficient to support intelligent behavior.
Relevance is closely and directly related to the concept of useful information. Relevance implies that all those items of information should be reported that may aid the users in making decisions and/or predictions. In general, information that is given greater weight in decision-making is more relevant. We know you know the process all too well- writing code, getting it approved, redeploying, and so on- and how much time and effort is spent on it. The complexity of this process and the amount of time spent on it can create company-level and technological friction. This lack of understanding takes place due to your software’s complexity.
Dictionary Entries Near understand
It would also require this information to be repeated wherever needed. While every loss of reliability diminishes the usefulness of information, it will often be possible to approximate an accounting number to make it available more quickly without making it materially unreliable. For example, it may sometimes be desirable to sacrifice precision for timeliness, for an approximation produced quickly is often more useful than precise information that is reported after a longer delay.
- It is related to the notion of an argument or explanation where there is an interface between the user and the decision-maker.
- Ideally, financial reporting should produce information that is both more reliable and more relevant.
- Information that is understandable to the average user of financial statements is highly desirable.
- The camp directors have mixed feelings but understand there are times the outdoors won’t cut it.
- Systems can be reduced from the “top” by focusing on the business requirements that truly matter, while leaving out, at least temporarily, requirements that are not mandatory.
- The semantic link network of concepts on the original representation is an important part of experience and knowledge for understanding the summary.
Functionality, usability, reliability, performance and supportability are together referred to as FURPS in relation to software requirements. There are seven steps to using the PEMAT to assess a patient education material. The instructions below assume that you will score the PEMAT using paper and pen. If you use the PEMAT Auto-Scoring Form, a form that will automatically calculate PEMAT scores once you enter your ratings, you can skip Step 5. Understandability would require financial statements to be identified by presenting the name of the financial statement, the name of the entity and the period covered by the statement.
Understandability
No critical pieces of information may be left to the engineer’s imagination. Most commercial software engineering tasks out there do not start out with a clean slate. There is an existing application, written using a certain computer language, relying on a set of frameworks and libraries, and running on top of some operating system. Discover the hierarchy of semantic communities in the semantic link network of concepts.